Section EZ 27 — Income Tax Act 2007: Meaning of qualifying improvement

EZ 27 Meaning of qualifying improvement Meaning (1) Qualifying improvement , for a person’s income year, means an improvement of an item that the person owns, if all the following apply: (a) the person incurred the expenditure on the improvement— (i) in the period starting on 16 December 1991 and ending with the close of 31 March 1993, other than under a binding contract they entered into before 16 December 1991; or (ii) in the period starting on 1 April 1993 and ending with the close of 31 March 1994, under a binding contract they entered into in the period starting on 16 December 1991 and ending with the close of 31 March 1993; and (b) the person used the item in its improved form before 1 April 1994; and (c) the person is allowed a deduction for depreciation under the Income Tax Act 1976 for the improvement for the income year. Exclusions (2) Qualifying improvement does not include— (a) an improvement to a building; or (b) an improvement requiring construction, if— (i) the construction started before 16 December 1991; or (ii) the construction started on or after 16 December 1991 under a binding contract that the person entered into before 16 December 1991; or (iii) the construction was not completed before 1 April 1994; or (iv) the improvement was not first used by the person before 1 April 1994. Defined in this Act: income year , qualifying improvement , Compare: 2004 No 35 s EZ 25